Business intelligence

Dr. Anuraag Awasthi [email protected] / 9810068709

Business Intelligence And Business Intelligence And Computer Applications In Computer Applications In

ManagementManagement

INTRODUCTIONSINTRODUCTIONS

Ground Rules

- Participation

- Questions and suggestions, any time

- Full Attendance

Section Tue Wed Thu

A 11 - 1 11 - 1 B 9 - 11 3 - 5 C 2 - 4 9 - 11

Class ScheduleClass Schedule

Unit : I

An introduction to computers, Computers in Business, Indian Computer Environment, Elements of Computer System, Generations of Computers, Introduction to the role of information in the functioning of modern organizations, Information systems literacy, Contemporary approaches to Information Systems, The digital firm, Challenges of Information Systems.

Business Intelligence and Computer Applications in

Management

• What is Business?

• How do we run a business?

• What is Business Intelligence?• What is the relevance of Computer

applications?

What is Business?

The term "business" has at least three usages, depending on the scope :- the singular usage to mean a particular organization- the generalized usage to refer to a particular market sector, "the music business" and compound forms such as agribusiness- the broadest meaning, which encompasses all activity by the community of suppliers of goods and services.

What is Business?

A business (also known as enterprise or firm) is an organization involved in the manufacturing, trade of goods, services, or all of these to consumers.

Businesses are predominant in capitalist economies, where most of them are privately owned and administered to provide service to its customers. Businesses may also be not-for-profit or state-owned.

Forms of Business

Sole proprietorship: A sole proprietorship is a business owned by one person for-profit. The owner may operate the business alone or may employ others. The owner of the business has unlimited liability for the debts incurred by the business.Partnership: A partnership is a business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business.

Forms of Business

Corporation: A corporation is a limited liability business that has a separate legal personality from its members. Corporations can be either government-owned or privately owned, and corporations can organize either for-profit or not-for-profit. A privately owned, for-profit corporation is owned by shareholders who elect a board of directors to direct the corporation and hire its managerial staff.

Forms of Business

Cooperative: Often referred to as a "co-op", a cooperative is a limited liability business that can organize for-profit or not-for-profit. A cooperative differs from a for-profit corporation in that it has members, as opposed to shareholders, who share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives.

Forms of Business

Franchise: Where the rights to market a range of products or services are purchased from a parent company who become a supplier to the franchise. Giving the franchisee access to the back up of an often well known company.

Forms of Business

"Direct Selling or Network Marketing": A legal multi level business system offering the benefits of a franchise often at a fraction of the cost. Allowing the independent business owner the opportunity to create a residual income stream by introducing other people to the parent company, this provides a passive income after a while and residual income. This business model is ethical and currently growing fast around the world.


Management




applications?

How do we run a Business?

A business is run to maximize the profits.Which means maximum output for minimum input.

Profits = Sales price – Cost Price

To become profitable and maximize profits, the Sales price should increase, and Cost price should decrease. Cost Price includes cost of raw materials, building, salaries, machines, sales cost etc.


Profits = Sales price – Cost Price

It is not possible to control ‘Sales Price’… the only thing in our hand is ‘Cost Price’.

A business is driven and controlled by numbers. Some of these are :- Sales- Revenue- Profits- Productivity


What are the functions in a typical organiztaion?

Suggest some numbers that are used to drive a business?


Management




applications?

Business Intelligence (BI)Business Intelligence (BI)

"BI“ is an umbrella term

to describe a set of concepts

and methods to

improve business decision-

making by

using fact-based support systems.

Business Intelligence (BI)Business Intelligence (BI)

BI refers to application and

technology, which is used

to gather, provide access to, and

analyze data and informationabout the company

operations.

What is Business What is Business Intelligence?Intelligence?

“Business Intelligence (BI) applications are decision support tools that enable real-time, interactive access, analysis and manipulation of mission-critical corporate information.”

What is a Computer?

Introduction To Computers

• Definition:• Its an electronic Device that is used for

information Processing.• Computer.. Latin word.. compute• Calculation Machine

• A computer system includes a computer, peripheral devices, and software


Computer

• Performs computations and makes logical decisions

• Millions / billions times faster than human beings

Computer programs

• Sets of instructions through which computer processes data

Hardware

• Physical devices of computer system

Software

• Programs that run on computers


• Definition:

• Introduction To Computer Software• Operating system• Problem solving Techniques• Computer Prog ramming languages• Computer Threats

• Accepts input, processes data, stores data, and produces output

• Input refers to whatever is sent to a Computer system• Data refers to the symbols that represent facts, objects, and

ideas

• Processing is the way that a computer manipulates data

• A computer processes data in a device called the central processing unit (CPU)


• Memory is an area of a computer that holds data that is waiting to be processed, stored, or output

• Storage is the area where data can be left on a permanent basis

• Computer output is the result produced by the computer

• An output device displays, prints or transmits the results of processing


• Characteristics of Computers• Huge Data Storage

• High Processing Speed

• Accuracy

• Reliability

• Versatility


Generations of Computers


• First Generation - Vacuum Tubes (1946-59)• Second Generation - Transistors (1957-64)• Third Generation – Integrated Circuits (1965-70)• Fourth Generation – Microprocessors (1970-90)• Fifth Generation (1990 till date)

Generation 1 : ENIAC The ENIAC (Electronic Numerical Integrator and Computer) was unveiled in 1946: the first all-electronic, general-purpose digital computer


Generation 2: IBM7094Generations of Computers

Generation 3: Integrated Circuits

Seymour Cray created the Cray Research CorporationCray-1: $8.8 million, 160 million instructions per seconds and 8 Mbytes of memory


Generation 4: VLSI Improvements to IC technology made it possible to integrate more and more transistors in a single chip.

•SSI (Small Scale Integration): 10-100 •MSI (Medium Scale Integration): 100-1,000•LSI (Large Scale Integration): 1,000-10,000•VLSI (Very Large Scale Integration): >10,000

Microprocessors


Generation 5?

•The term “Generation 5” is used sometimes to refer to all more or less “sci fi” future developments

Voice recognitionArtificial intelligenceBio computing

Cloud ComputingNano technologyLearningNatural languages


Use of Computers

Make groupsGroup-wise, identify possible computer

applications for a large scale organization, and possibility of using internet in :◦ Government◦ Bank◦ Factory◦ Agriculture◦ Educational Institution◦ Retail Shop◦ Pharma Company◦ Insurance Company

Indian Computer Environment

Business Organizations Industrial Organizations Educational Organizations Government Organizations Medical Organizations Entertainment Organizations Scientific Research

Business Organizations Industrial Organizations Educational Organizations Government Organizations Medical Organizations Entertainment Organizations Scientific Research

Computing In Business

Payroll AccountingOffice AutomationStock Control InsuranceStock BrokingAccountingBanking

Payroll AccountingOffice AutomationStock Control InsuranceStock BrokingAccountingBanking

Payroll Calculations

Record-Keeping Wage-Calculations Monthly Budgetary Calculations

Record-Keeping Wage-Calculations Monthly Budgetary Calculations

Office Automation

Evolution of E-Offices Record Maintenance Daily Transactions Electronic Filing Report Preparation Desktop Publishing Printing

Evolution of E-Offices Record Maintenance Daily Transactions Electronic Filing Report Preparation Desktop Publishing Printing

Insurance

Online InformationData Base ManagementInterest CalculationsBonuses

Online InformationData Base ManagementInterest CalculationsBonuses

Stock broking

Database ManagementQuick Retrieval of RecordsOnline up to date information

Database ManagementQuick Retrieval of RecordsOnline up to date information

Accounting

Budget PreparationBudget CalculationCost-Benefit AnalysisNational Income AccountingTax - Calculations

Budget PreparationBudget CalculationCost-Benefit AnalysisNational Income AccountingTax - Calculations

Banking

ATMOnline-BankingElectronic Payments

ATMOnline-BankingElectronic Payments

•Offers ATMS throughout India

•Largest bank network in India

•Online –Banking

•E-Payments

•Offers ATMS throughout India

•Largest bank network in India

•Online –Banking

•E-Payments

AUTOMATIC TELLER MACHINEAUTOMATIC TELLER MACHINE

AUTOMATIC TELLER MACHINEAUTOMATIC TELLER MACHINE

•Quick retrieval and deposition of cash 24 hrs a day

•Electronic Funds transfer

•User-friendly Interface

•Efficient and Accurate Banking

•Quick retrieval and deposition of cash 24 hrs a day

•Electronic Funds transfer

•User-friendly Interface

•Efficient and Accurate Banking

E-GovernmentE-Government

Electronic Data InterchangeBudgetsNetwork between District,

State and Central GovernmentNational Informatics CenterElectronic Voting

Electronic Data InterchangeBudgetsNetwork between District,

State and Central GovernmentNational Informatics CenterElectronic Voting

Next Generation Services

Certifying Authority for Digital Signatures

Risk Management based ClearancesDematerialization of challansE- paymentsE-Registration for excise and service

taxE-filing of returns and refunds

Certifying Authority for Digital Signatures

Risk Management based ClearancesDematerialization of challansE- paymentsE-Registration for excise and service

taxE-filing of returns and refunds

Importer/

Exporter/CHA

Customs

Stations

Excise Divisions

Excise Assesses

Service Tax

Assesses

Directorates

WCO/

Other Customs Agencies

Central Servers/Mainframe

Partner Agencies

(e.g., DGFT)

Ministry of Finance

Contemporary Approaches to Information Systems

Contemporary Approaches to Contemporary Approaches to Information SystemsInformation Systems

Technical Approach

The technical approach uses mathematical models to test the capabilities of information systems. These disciplines include: • Computer Science - concerned with methods of computability, computation, and data storage and access. • Management Science - emphasized the development of models for decision making, and management practices.


Operations Research - focuses on mathematical techniques for optimizing selected parameters of organizations.(inventory control, transaction costs).


Behavioral Approach

Deals with behavioral issues that arise in the development, and long term maintenance of the information system. • Different disciplines, such as psychologists, sociologists, Economists, study information systems, and the impacts they have in the organizational environment.Behavioral changes can occur within the organization during, and after information system development. The key to this approach is to find the solution to the behavior, which is not a technical issue.

Challenges of Information Systems

Challenges of Information Challenges of Information SystemsSystems

The Strategic Business Challenge:◦ How can business use information technology to

design organizations that are competitive and effective

The Globalization Challenge:◦ How can firms understand the business and

system requirements of a global economic environment?

The Information Architecture Challenge:◦ How can organizations develop an information

architecture that supports their business goals

Challenges of Information Challenges of Information SystemsSystems

The information systems investment challenge:◦How can organizations determine the

business value of information systemsThe Responsibility and control

challenge:◦How can organization design systems that

people can control and understand?◦How can organization ensure that their

information systems are used in an ethically and socially responsible manner?

Digital Firm

Digital FirmDigital Firm

A digital firm is one in which nearly all of the organization's significant business relationships with customers, suppliers, and employees are digitally enabled and mediate. Core business processes are accomplished through digital networks spanning the entire organization or linking multiple organizations.

Digital FirmDigital Firm

Digital firms involve both time sihfting and space shifting. Time shifting refers to business being conducted continuously, 24x7, rather than in narrow "work day" time bands of 9 a.m. to 5 p.m. Space shifting means that work takes place in a global workshop, as well as within national boundaries.

Assignment

Make groups of 5 students

Identify an organization

Identify all possible data that are used by management to make decisions

Possible departments are Human Resource, Sales & Marketing, Stores, Production, IT, Administration, Finance, Support

Questions?

Technology

Business intelligence